Revenue plummeted 83% to RMB1.3bn from RMB8.0bn previously, also due to "significant decrease of income from the orders on hand of the core shipbuilding segment" and a significant non-recurring provision of RMB5.7bn for various receivables and to impair the value of assets.
The operational provision amounted to approximately RMB 4.3bn, which included impairment provision for of trade receivables, other receivables and prepayment amounts due from customers for contract works. There was also an asset-related provision made for approximately RMB1.4bn, to help subsidiary companies to assess its asset quality more clearly, Rongsheng said.
"The significant provision helps us to assess the quality of our orders on-hand, reduce the adverse external factors which may impact our future business development, and optimize our pace of development. After making such provisions, 2014 would become a new starting point where we will go forward with a fresh start," the company said in a press release.
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